2010

09-01-2010  Nothing New
We continue to believe that inexpensive quality companies are under-owned, especially within the small-cap universe.

08-01-2010  Unusually Uncertain
While the world seems caught in the daily macro-micro tug of war at the heart of these uncertain economic times, we remain confident in our investment approach.

07-01-2010  Proven Adaptability
Our business is trying to find high-quality, small-cap businesses, wherever they might be.

06-01-2010  Another Speed Bump
The sovereign debt crisis in Europe, fears of an economic slowdown in China and new financial regulatory proposals in the United States all may be speed bumps for the market.

05-01-2010  Capital Allocation
Understanding a company's capital allocation decisions is a key element in our investment process. This is especially true today when corporate balance sheets are generally in excellent condition and, in many cases, flush with cash.

04-01-2010  The Quarterly Correction
Volatility continues to create potential opportunities. We continue to believe that we have entered a more normalized environment for equities, one where opportunities are found on a stock by stock basis.

03-01-2010  Beware of Greeks Bearing Gifts…
How has global volatility been creating opportunity for us here at Royce? The possibility of debt crises in Greece, Spain and Portugal created fears of economic contagion across the globe. The anxiety helped to drive share prices down, creating what we saw as potentially profitable opportunities.

02-01-2010  Getting Financed
Banks have been one of the most difficult industries in which to find the qualities that we seek over the past few years. Yet valuations for small-cap banks, following what many consider to be the 100-year flood in financials, are gradually beginning to look more attractive.

01-04-2010  Is It Time for Quality?
Driving our investment process is a rigorous search for quality that begins with an examination of a company's balance sheet, cash flows and historical returns, with particular focus on return on invested capital (ROIC).

2009

12-01-2009  Keep Active!
The sheer size of the small-cap universe makes it ideally suited for active management, along with its relative lack of institutional focus and limited research availability.

11-01-2009  One Stock at a Time
Volatility in the equity markets, as measured by the Volatility Index (VIX), has come down dramatically over the past twelve months.

10-01-2009  Resurrecting Final Demand
Confidence has returned to the markets—at least for the moment.